Conestoga College has officially plunged into the red, reporting a $32.8 million operating deficit for its most recent fiscal year. It’s a dramatic reversal from the multi-million-dollar surpluses the college had during peak international student enrollment. The financial downturn was revealed in a financial document covering the 2025–26 fiscal year ending March 31. According to the college’s Consolidated Statement of Revenue and Expenditures, total revenue fell to nearly $444 million, while total operating expenses reached nearly $477 million. The resulting gap left the institution with a financial shortfall of $32.8 million. In a statement to CTV News, Norma McDonald Ewing, who has been acting as interim president, did not directly address the deficit. “Amid a new post-secondary landscape across Canada, Conestoga College continues to make strategic decisions to support the long-term financial sustainability of the institution and keep delivering a world-class education that prepares students for good-paying, in-demand jobs and careers,” said Ewing. “Thanks to our multi-year sustainability plan and the government’s new funding model, which supports programs in demand in our local workforce, Conestoga continues to build Southwestern Ontario’s workforce for decades to come.” International enrolment collapses According to the document, tuition revenue plummeted by 57 per cent, dropping from $564 million in 2025 to $241 million in 2026 as international student enrolment collapsed.In January 2024, the federal government put a cap on international student enrolment. In 2025, the college said international student enrolment was down 77 per cent from 2023. The $32.8 million deficit marks a stark shift from previous years, when Conestoga reported large annual surpluses driven by rapid expansion in international student recruitment. Just last year, CTV News reported that Conestoga posted a $121 million surplus, though that figure was still down from a $252 million surplus the year before. Provincial audit and union outcry The financial plunge comes as the institution faces a major governance upheaval. In May, the Ontario government ousted Conestoga’s board of governors and appointed Linda Franklin as administrator to oversee operations. The move followed a provincial audit that uncovered “numerous egregious financial decisions” and governance mismanagement. The audit was triggered, in part, by scrutiny over former college president John Tibbits’ skyrocketing salary. The audit prompted strong reactions from union leaders representing college staff. “This is how I have felt for the past few years,” Vikki Poirier, president of OPSEU Local 238 told CTV News in May. “It almost feels like you’re swimming upstream. So, to finally have this validation that our members are not crazy.” Poirier called for public transparency, the return of a multi-million-dollar exit package paid to Tibbits, and community input into choosing a future board. Locally, support staff members have also called for the removal of Tibbits’ name from the college’s Waterloo campus building. Since Franklin’s appointment as administrator in May, union leaders said operations at the college have felt like time has stood still. “Linda Franklin has quite a job ahead of her,” said Leopold Koff, president of OPSEU Local 237. The union represents Conestoga College faculty members. “A lot of things are on hold right now. But it seems like all of the management level are just holding their breath, waiting for the next order, and nobody knows what that’s going to be.” Part of that pause included a hold on a second wave of faculty layoffs that were in the works when Franklin took over. The pause followed a prior round of job cuts in which 378 full-time faculty and support staff received layoff notices just before Christmas. “We have a significant amount of people on recall,” Poirier noted. “It would be nice to see some of those folks back. I don’t know if we can reverse things after the fact, but here we are.” In a statement sent to CTV News following her appointment, Franklin said she was “honoured to serve the province as administrator” and looked forward to working “alongside the Minister of Colleges, Universities, Research Excellence and Security to restore fiscal management and strong governance to Conestoga College.”
